Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Falling Property Rates Drive Q1 Global Insurance Price Fall

News release

Falling Property Rates Drive Global Insurance Price Fall in Q1: Marsh

London, Tuesday 6 May, 2014 – Global insurance rates declined in the first quarter of 2014, driven largely by a continued softening in property rates, according to Marsh’s latest Global Insurance Market Quarterly Briefing. The Marsh Risk Management Global Insurance Index declined for the fourth consecutive quarter and is now at its lowest level since the third quarter of 2012. Rates fell slightly overall in the US, reversing an upward trend in previous quarters.

According to Marsh, a mix of strong competition with ample capacity and a scarcity of major events contributed to a drop in property insurance rates across all major regions in the first quarter. The US and UK experienced their largest quarterly decline in more than two and a half years — 2.5% and 5%, respectively. In Asia-Pacific, rate reductions of up to 20% were widespread for commercial business, in some cases nearing 25%, depending on the size of the risk. Latin America recorded the largest average property renewal rate reduction among major global regions, at 7.6%.

While the US and Continental Europe saw a slight increase in casualty rates, the casualty market continued to favour insurance buyers, with rates remaining generally stable overall and decreases being recorded across Latin America, Asia-Pacific, and in the UK.

“The first quarter saw marked evidence of additional capacity flowing into the global market, primarily from existing players looking to increase their market share in particular lines of business or growing territories,” commented David Batchelor, president of Marsh’s International Division. “And continuing competitiveness in the reinsurance market also added fuel to pricing reductions in primary markets.”

Among other findings from the report:

• The professional liability market remained stable overall, with rates on average flat or declining by up to 10% in Australia, France, Germany, India, and Korea, depending on the quality of the risk.

• Italy and Spain were the only countries in the Eurozone to experience a rate increase for financial institutions coverage during the first quarter, with rates on average flat to up 20%.

• Total insurable values continued to increase modestly, as economies recover from the global financial crisis. Buyers that provide property underwriters with complete and accurate data are best positioned for more favourable terms at renewal.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Inflation: CPI Increases 0.3 Percent In June Quarter

The consumers price index (CPI) rose 0.3 percent in the June 2014 quarter, Statistics New Zealand said today. This follows rises of 0.3 percent the March quarter and 0.1 percent in the December 2013 quarter. More>>

ALSO:

Half Empty: Dairy Product Prices Drop To Lowest Since December 2012

Dairy product prices fell to the lowest level since December 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and anhydrous milk fat. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news